A low credit utilization ratio (how much credit you’re using compared to your total limit) shows lenders that you manage credit well. Aim to use less than 30% of your available credit before requesting an increase.
Ask for a Modest Increase
Requesting a significant increase (like doubling your limit) might trigger a hard inquiry on your credit report. Instead, ask for a reasonable increase that aligns with your income and spending habits.
Tips to increase credit limit-
1.) Improve your credit score-
Keep your credit utilization low, avoid applying for many cards, pay your dues on time and use your card efficiently.
2.) Growth in income-
A high income indicates strong financial capacity, which indicates you can responsibly manage a higher credit limit as well.
3.) Using card regularly-
Using your credit card regularly and responsibly shows lenders that you can effectively manage credit.
4.) Request at a correct time-
Avoid requesting a credit limit increase immediately. Instead, wait for 6 to 12 months of consistent usage and timely payments before applying for a higher credit limit.
Requesting a credit limit increase will not hurt your credit score.
I’ve been using my credit card responsibly and now feel I might need a higher limit for my expenses. Could you please guide me on how I can increase my credit limit without negatively affecting my credit score?
I can relate to your situation when I felt my credit card limit was too low for my monthly expenses, I also wanted to increase it but was worried about my credit score. The good news is, there are safe ways to request a higher limit without hurting your score.
1. Build a good track record: Use your credit card regularly and always pay your bills on time (preferably in full). Banks are more likely to offer a higher limit if they see you as a responsible user.
2. Keep your utilization low: Try to use less than 30–40% of your current limit. This shows lenders that you’re not overly dependent on credit.
3. Request a limit increase from your bank: You can contact your bank directly (through net banking, mobile app, or customer care) and ask for a credit limit enhancement. If you have a history of timely payments, they often approve without a hard inquiry.
4. Accept automatic upgrades: Sometimes banks offer limit increases proactively. Accepting these doesn’t hurt your score since they’re based on your existing relationship.
5. Avoid too many requests: Frequent requests for limit increases can lead to hard inquiries, which may slightly affect your credit score.
By following these steps, you can enjoy the benefits of a higher limit like better spending flexibility and an improved credit utilization ratio without damaging your score.
For official guidance on how credit score is impacted, you can check the TransUnion CIBIL website here: